NEW YORK, Oct. 7, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of all purchasers of Primus Telecommunications Group securities ("Primus") (Nasdaq:PRTL) during the period between August 5, 2003 through July 29, 2004 (the "Class Period").
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants knew or recklessly disregarded the fact that the Company was operating in a new competitive reality where major incumbent carriers used long distance offerings as a "loss leader" to encourage customers to subscribe to their bundled local, cellular and broadband services; (2) that the Company's core long distance and dial-up Internet service provider products ("ISP") were experiencing significant pricing pressures; (3) that the Company's wireline long distance usage was continuing to appreciably decline due to increased use of cellular phones and Internet services; (4) that the Company was forced to accelerate investment in voice-over-Internet protocol ("VoIP") and mobile virtual network operator ("MVNO") networks; and (5) and that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and progress.
On July 29, 2004, after the close of the market, Primus announced its results for the quarter ended June 30, 2004. The Company reported a net loss for the quarter of $15 million compared to net income of $20 million in the second quarter of 2003. News of this shocked the market. Shares of Primus fell $1.70 per share, or 50.75 percent, on July 29, 2004, to close at $1.65 per share.
If you purchased or acquired the shares of Primus, on any world exchange, between August 5, 2003 through July 29, 2004, and sustained damages, you may, no later than October 18, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.